With both AT&T and Verizon unveiling $99.99 flat-rate unlimited calling plans this week, Sprint's is expected to undercut its rivals by up to 40%, plunging the wireless industry headlong into a price war. Sprint isn't telling yet, but analysts predict it will offer unlimited calling for roughly $60 a month, more than enough to rattle the market, Reuters reports.
While today's new plans affect only the 5-10% of wireless consumers currently paying more than $100 per month, Sprint's price slashing could have a widespread effect. "It's sinking in how bad this could be for the industry," said one analyst, after Verizon shares dropped 5% to $33.52 and AT&T fell 7% to $33.10. Sprint, too, slipped nearly 6%, to $8.71.